VinaCapital and Dragon Capital-backed real estate brokerage firm CenLand plans to list 50 million shares, equivalent to VND500 billion ($22 million) of charter capital, on Ho Chi Minh City Stock Exchange (HoSE), according to the latest announcement on the stock exchange.
The timing and pricing for the listing, however, have not been disclosed.
Founded in 2002, CenLand is one of the top five real estate brokerage companies in Vietnam. In 2017, the company sold more than 11,500 units, thanks in part to its relationships with key Vietnamese developers such as Khang Dien House, Sovico, and Trung Thuy Group.
In April, VinaCapital‘s flagship fund Vietnam Opportunity Fund (VOF) picked up a minority stake in CenLand for $10 million.
“CenLand is already the top broker in the north, with the majority of its business in primary sale. We look forward to the company broadening its presence in the secondary market, where opportunities are expected to grow, and to more fully develop and utilise digital sales channels,” VOF managing director Andy Ho said while announcing the investment in CenLand.
Dragon Capital, a Vietnam-focused group of investment funds, earlier also invested $11 million into the real estate brokerage firm. Currently, VinaCapital and Dragon Capital own 12 per cent and 13 per cent of the brokerage respectively.
CenLand’s revenue reached $48 million in 2017 while profit after tax stood at $11 million. This year, CenLand expects revenue to rise to $61 million on the back of forecasted sales of more than 16,000 units in 71 projects throughout the country.
This year, the real estate company also plans to open its representative offices in other countries to attract foreign investors to the Vietnamese real estate market.
Vietnam’s real estate sector saw mergers and acquisitions (M&A) reach a total of $200 million in the first quarter this year, according to recent estimates by real estate and investment management firm JLL.
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Vietnam: VinaCapital invests $10m in real estate broker CenLand
Real estate M&A in Vietnam hits $200m in the first quarter: JLL
